Should you finance your motorcycle from the dealership?

The world of motorcycle financing is an interesting one. With so many ways to get your hands on a sweet new ride, it can be hard to know which option is right. If you’re thinking about financing your bike through the dealership, here are some things about motorcycle finance that you should consider first.

Credit score

A good credit score is 600 or higher, and it’s essential for several reasons. Your credit history directly impacts your ability to qualify for loans and new lines of credit, including the financing offered by dealerships.

A lousy payment history can make getting approved for any kind of loan very difficult. In some cases, even an excellent credit score may not convince lenders that you’re worthy of their money if they see evidence that you’ve made past mistakes with previous payments. If you want to finance your motorcycle through the dealership and have imperfect or non-existent credit, consider improving it before applying for financing at all; even then, it might be better to use another method.


With the proper preparation, you can get the motorcycle you want at a competitive price. Here’s what to do:

  • Get pre-approved before going to the dealership. Your credit score and loan amount will be based on your income, expenses and other factors. So, if you already have financing, it will be easier for both parties involved.
  • Have a plan for what kind of motorcycle you want and how much money you’ll spend on one. This way, there won’t be any confusion about whether or not something is affordable or within budget limitations, and it’ll help avoid any potential misunderstandings at negotiation time.
  • If something isn’t clear from what was said during negotiations (e.g., monthly payment amounts), ask questions until it makes sense to both parties involved before entering into any legal agreement regarding financing options with specific dealer services.

Research Financing Options

Before you make the final decision, it’s important to research your financing options. You can find reasonable rates at credit unions, peer-to-peer lending sites and online lenders. Local banks can also offer competitive rates on loans. Additionally, consider whether or not you want to use a credit card for financing.

Credit unions may be able to offer you lower interest rates than other financial institutions because they are non-profit organisations that operate by pooling members’ money together and then providing low-cost loans in the form of car or motorcycle financing. These organisations tend to have fewer restrictions than banks when approving loans based on your credit history and income level. But note that this doesn’t mean they’ll endorse everyone!

Peer-to-peer lending sites also allow individuals with good credit scores to invest their money directly into personal loans for others at attractive interest rates (between 5% and 35%).

Online lenders allow customers without traditional bank accounts (such as those issued by payday loan services) access to online applications and quick decisions within minutes instead of days or weeks, like other providers might take during approval processes. This makes them an ideal choice if speed is critical when applying.

Cash Down Payment

If you can afford to put down a cash payment, it’s often a good idea. You can use it as a negotiating tool with the dealership, where they will likely accept less than what they initially offered. If you don’t repay the loan, you’ll also have security deposits, and they will repossess your motorcycle (and all its accessories). Lastly, putting money down will lower your overall interest rate on the loan if you’re buying through an NBFC or finance company that charges interest rates higher than what banks charge.


Financing a motorcycle is a big decision. As mentioned, there are plenty of motorcycle finance options to get your dream bike on your porch. You want to ensure you’re getting the best deal possible and find the right financing plan that works for you

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